A financial audit is mainly conducted with the main objective of evaluating the financial statements of the company to know the prevailing financial position as well as to check the accuracy of the statements and records. The financial audit report provides an overall picture or a general idea of the company. it doesn’t provide any specific information of any kind of transactions or payments. Financial audits are mainly conducted on an annual basis and the audit report is also published to the public which can be used by the lenders, creditors, and investors to make investment decisions. Objectives of conducting a financial audit may also include the identification of any errors or fraudulent activities in the accounting statements.
What do you mean by Forensic audit?
A forensic audit is quite similar to a financial audit but the main point of difference between these two audits is that a forensic audit is conducted to gather the facts which can be presented in the court of the law. To conduct a forensic audit strict knowledge of the legal framework is required and the auditor must have perfect experience in internal auditing and external auditing. A forensic audit provides evident information about specific activities and departments of the company which enable the court to decide whether there is any unethical behavior or fraud conducted in the company. The auditor plays the role of an expert who explains all the details to the court in a free and fair manner.
